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Approximately $1.2 billion investment expected to create about 490 high-skill, high-wage manufacturing jobs in South Carolina’s UpstateBlacksburg facility will serve as a cornerstone of USA Rare Earth’s domestic magnet manufacturing footprint and advance the Company’s integrated mine-to-magnet value chainInvestment strengthens U.S. capacity to produce critical rare earth metals and magnets for defense, aerospace, semiconductors, energy and other advanced industries BLACKSBURG, S.C., Sept. 09, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) (“USA Rare Earth,” “USAR” or the “Company”), a rare earth, critical minerals and advanced materials company, today broke ground on its new rare earth metal and magnet manufacturing facility in Blacksburg, South Carolina, marking a major step in the Company’s effort to build a secure, integrated rare earth supply chain for the United States and its allies.

Located on a 124-acre site in Bailey Industrial Park in Cherokee County, the approximately 800,000-square-foot facility represents an approximately $1.2 billion investment and is expected to create roughly 490 high-skill, high-wage manufacturing jobs in South Carolina’s Upstate. Once online, the facility is targeting production capacity of 6,400 metric tons per annum (tpa) of sintered neodymium-iron-boron (NdFeB) permanent magnets and 5,000 tpa of strip-cast metal and alloy, with commissioning targeted to begin in 2028.

“Breaking ground in Blacksburg is an important moment because it moves our vision from plans on paper to infrastructure taking shape,” said Barbara Humpton, Chief Executive Officer of USA Rare Earth. “We’re building the capabilities America needs to make critical rare earth materials and magnets at home, while making a long-term investment in the people and communities that will help us do it. We’re proud that the next chapter of USA Rare Earth’s growth is being built here in South Carolina.”

Investing in South Carolina and the Upstate

USA Rare Earth selected Blacksburg following a comprehensive evaluation of nearly 275 potential sites across the country. South Carolina stood out for its skilled advanced manufacturing workforce, reliable power, transportation infrastructure, proximity to customers and suppliers, and strong support from state and local partners. Located along the Interstate 85 corridor, the operation will add to an advanced manufacturing ecosystem that has made the Upstate an important center of American industrial production.

As part of its broader commitment to Cherokee County and the region’s growing manufacturing economy, USA Rare Earth today also announced a $250,000 contribution to Spartanburg Community College to support its new SPARK Center in Cherokee County. The new center will connect education, workforce development and economic development, providing resources to support businesses locating, launching and growing in the county while helping strengthen the local talent pipeline and broader business ecosystem.

“This Blacksburg community has the infrastructure, talent and manufacturing heritage to support what we’re building, but just as important has been the commitment we’ve seen from people across Blacksburg, Cherokee County and South Carolina,” said David Bushi, Senior Vice President of Manufacturing at USA Rare Earth. “We intend to build something here that creates opportunity locally and strengthens American manufacturing for decades to come.”

“South Carolina’s greatest strength has always been our people and their ability to build things the world depends on,” said South Carolina Governor Henry McMaster. “USA Rare Earth’s decision to put down roots in Blacksburg is another tremendous vote of confidence in our workforce and in the manufacturing future of our state. Today, we celebrate the start of a project that will create new opportunities for families across Cherokee County and the Upstate while helping America rebuild a critical industry here at home.”

Building a Secure, Integrated Rare Earth Supply Chain

The groundbreaking also marks an important milestone in USA Rare Earth’s broader strategy to build and grow a secure, globally integrated rare earth value chain that reduces reliance on concentrated sources of supply. Rare earth metals and permanent magnets are essential inputs across defense, aerospace, semiconductor manufacturing, physical AI, mobility, energy, healthcare and other advanced industries. Yet the United States remains heavily dependent on foreign sources for many of these critical materials and manufacturing capabilities, with China dominating significant portions of the global rare earth supply chain.

USA Rare Earth is working to change that by building capabilities across the full value chain — from mining and processing to separation, metal- and alloy-making and permanent magnet manufacturing.

The Blacksburg facility will complement USA Rare Earth’s existing magnet manufacturing operation in Stillwater, Oklahoma, where the Company commissioned its first commercial production line earlier this year. Together, Blacksburg and the planned expansion at Stillwater are expected to provide USA Rare Earth with 10,000 tpa of domestic NdFeB magnet manufacturing capacity. The Company is also investing in and expanding capabilities across its broader global platform, supporting local production and economic development while connecting critical rare earth resources with advanced manufacturing markets globally.

“A secure rare earth supply chain isn’t built with a single mine or a single factory. It requires rebuilding every link,” said Gregory Bowman, Chief Global Policy Officer of USA Rare Earth. “Blacksburg adds critical manufacturing capacity to that broader platform and brings the United States closer to producing more of the materials and magnets our industries depend on outside of Chinese control. What starts with a groundbreaking here in South Carolina ultimately strengthens America’s industrial and national security.”

Partnership Turning Vision Into Reality

USA Rare Earth is working with a team of construction, development, engineering and technology partners to bring the Blacksburg facility online.

Clark Construction Group and Frampton Construction are serving as design-builder through the Clark/Frampton joint venture, with Trammell Crow Company serving as developer. McMillan Pazdan Smith is serving as project architect in collaboration with Bennett & Pless, Thomas & Hutton and Salas O’Brien. Chang Robotics is bringing expertise in advanced manufacturing, automation and robotics.

“Large-scale manufacturing investments succeed when ambition is matched by disciplined execution,” said Spencer Middleton, vice president with Clark Construction. “Our focus is on translating the significance of this project into a construction effort that is equally rigorous, bringing the right people, resources, and planning together to deliver for USA Rare Earth and South Carolina.”

“Projects of this scale demand a different level of alignment from the start,” said Dave Florence, chief strategy officer at Frampton Construction. “The decisions made early, the trust established across the team, and the ability to solve problems together all shape what happens in the field. We’re proud to help deliver an investment that will expand advanced manufacturing in South Carolina and strengthen domestic production for years to come.”

About USA Rare Earth

USA Rare Earth, Inc. (Nasdaq: USAR) is building a fully integrated rare earth and permanent magnet value chain across the United States, Brazil and the United Kingdom. Through its ownership of Less Common Metals (LCM), one of the world’s leading producers of rare earth metals and alloys, its development of magnet manufacturing capacity in Stillwater, Oklahoma, the Pela Ema mine in Brazil and the Round Top deposit in Texas, USA Rare Earth operates across the entire value chain from mining to metal-making, alloy production and neodymium magnet manufacturing. USA Rare Earth is establishing a secure, Western-aligned supply of materials essential to the aerospace and defense, semiconductor, energy, data center, physical AI, mobility, healthcare and industrial sectors. For more information, visit www.usare.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include those relating to the expected capital investment, job creation, production capacity and commissioning timeline of the planned rare earth metal and magnet manufacturing facility in Blacksburg, South Carolina, anticipated development of Spartanburg Community College’s new SPARK Center, the potential impact of the Blacksburg facility on domestic magnet manufacturing and the rare earth value chain and other statements regarding the Company’s expectations for future development, operations, strategies, transactions and financial performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as “aim,” “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “growth,” “intend,” “may,” “might,” “plan,” “potential,” “project,” “propose,” “should,” “target,” “vision,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

Forward-looking statements are subject to risks and uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from our expectations, including without limitation: risks associated with permitting, construction, workforce availability, the ability of our planned Blacksburg facility to commence commercial operations on the timing and with the production capacity anticipated or at all; risks that we may experience delays, unforeseen expenses, increased capital costs, and other complications while developing our projects; our ability to raise necessary capital on acceptable terms or at all; the availability of rare earth oxide, metal feedstock and other materials, utilities (including power and water) and equipment in quantities and prices that allow us to develop and commercially operate our Stillwater facility and other facilities; our ability to meet individual customer specifications and produce a consistently high quality product; potential supply chain, logistics or product delivery disruptions; any delays in obtaining or renewing permits and licenses; fluctuations in demand for and prices of neo magnets, rare earth elements and our other products, including without limitation as a result of dumping, predatory pricing and other tactics by our competitors or state actors or the overall competitive environment; risks that we may not realize the anticipated benefits of USA Rare Earth’s combination with Serra Verde or our proposed and prior acquisitions, including expected synergies, financial performance, estimated earnings before interest, taxes, depreciation and amortization and, in the case of Serra Verde, integration of operations, on the anticipated timeline or at all; potential delays in the optimization and commissioning program and the Phase II expansion at the Pela Ema facility; political, economic, regulatory, tax, currency and other risks associated with Serra Verde’s operations in Brazil and Switzerland; physical climate risks related to the Pela Ema mine; the assumption of substantial indebtedness under Serra Verde’s Retained Finance Agreement, which contains restrictive covenants and other requirements that could adversely affect the combined company’s financial flexibility and operations; risks that the Offtake Agreement is terminated or ceases to be in full force and effect or that the counterparty to the Offtake Agreement is insufficiently capitalized, including as a result of a failure to finalize definitive debt financing arrangements within the timeframes contemplated by the Offtake Agreement; risks that the proposed transaction with Carester SAS may not be consummated on its anticipated timeline or at all; the ability of our Stillwater magnet manufacturing facility to generate revenue; our limited operating history; our ability to commercially extract minerals from the Round Top deposit on our anticipated timeline or at all; differences between planned and actual recovery and yield rates; potential dilution to existing stockholders and adverse effect on our stock price if we issue additional common stock or equity-linked securities; the volatility of our stock price; any changes in royalty rates or the imposition of new royalties; risks associated with community relations; our ability to achieve positive cash flow or profitability or the ability to access cash flow within our corporate structure due to restrictions contained in our financing agreements; our ability to convert current commercial discussions and/or memorandums of understanding with customers for the sale of our neo magnets and other products into definitive orders; our dependence, in part, on the growth of existing and emerging uses for neo magnets; the risk that additional manufacturing, refining and mining competitors could result in a reduction in revenue; geopolitical developments or disruptions, such as changes in the political environment, export/import or environmental policy of the People’s Republic of China, the United States or other countries in which we operate or sell products or otherwise; our designation on an export control list by China which has had and is expected to continue to have an adverse impact on our ability to source key raw materials and supplies from China; war, terrorism, natural disasters or public health emergencies; our ability to retain or recruit key personnel; environmental, health and safety regulations; the receipt of funding from the U.S. Department of Commerce is subject to the achievement of milestones which may not be achieved on the expected timeline or at all; and our ability to comply with requirements for federal, state and local government incentives and financing.

Additional risks and detailed information regarding factors that may cause actual results to differ materially has been and will be included in our filings with the SEC, including our most recently filed Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q and subsequent filings. Any forward-looking statements speak only as of the date of this press release (or such other date as is specified in such statements), and we undertake no obligation to update any forward-looking statements as a result of new information or future events or developments.

Investor Relations Contact
J.B. Lowe, CFA
USA Rare Earth, Inc.
[email protected]

Media Relations Contact
Collected Strategies
Dan Moore / Scott Bisang
[email protected]

Key Takeaways USA Rare Earth began commercial NdFeB magnet production at its Stillwater facility in Q2 2026.USAR expanded equipment, inventories and construction assets to support production ramp-up.USA Rare Earth ended Q2 2026 with about $1.53 billion in cash to fund manufacturing expansion. USA Rare Earth, Inc. (USAR - Free Report) continues to make steady progress at the Stillwater magnet manufacturing facility in Oklahoma as it ramps up commercial production. The facility is designed to manufacture Neodymium Iron Boron (NdFeB) magnets, which are critical components for defense, aerospace, automotive, industrial and other high-growth end markets. During the second quarter of 2026, the Stillwater facility began commercial production of NdFeB magnets, although the company has not yet started generating revenues from magnet sales as production continues to ramp up.

Throughout the second quarter of 2026, USAR continued to expand the Stillwater facility by advancing building improvements, installing additional manufacturing equipment and increasing inventories to support production ramp-up. The company also continued investing in construction-in-progress assets and equipment deposits as it prepares the facility for higher production volumes.

To support its progress, USA Rare Earth maintained a strong balance sheet, ending the second quarter of 2026 with approximately $1.53 billion in cash and cash equivalents. The company continues to deploy capital toward the Stillwater facility, equipment purchases and the development of its rare earth manufacturing platform, including the planned Blacksburg refined metals facility in South Carolina.

In November 2025, USAR strengthened its vertical integration through the acquisition of Less Common Metals, a rare earth metals and alloys manufacturer in the United Kingdom. The acquisition continues to support the company’s mine-to-magnet strategy by expanding its capabilities in rare earth metals, alloys and strip-cast production for the Stillwater facility.

Snapshot of USA Rare Earth’s PeersAmong its major peers, Trilogy Metals Inc. (TMQ - Free Report) continues to make steady progress at the Ambler mining district. Although Trilogy is not yet in production, it is advancing the Upper Kobuk Mineral Projects through Ambler Metals LLC, its joint venture with South32 Limited. In August 2026, Trilogy executed definitive agreements for a roughly $35.6 million strategic equity investment by the U.S. Department of War to support exploration and development of the projects. The Arctic Project is also progressing through federal and state permitting, with a targeted Record of Decision in September 2028.

USAR’s other peer, NioCorp Developments Ltd. (NB - Free Report) , is working to move its Elk Creek Project in Nebraska closer to production. In August 2026, NioCorp completed an updated feasibility study that envisions a 40-year mine producing eight critical-mineral products, including niobium, scandium, titanium and several rare earth products. NioCorp's study estimates a pre-tax net present value of $4.1 billion, while ongoing mine-portal construction is establishing the future access point to the underground operation.

USAR’s Price Performance, Valuation & EstimatesShares of USAR have gained 48% in the year-to-date period compared with the industry’s growth of 29.5%.

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From a valuation standpoint, USAR is trading at a forward price-to-sales ratio of 8.67X compared with the industry’s average of 1.43X. USA Rare Earth carries a Value Score of F.

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The Zacks Consensus Estimate for USAR’s 2026 earnings has declined over the past 60 days.

Image Source: Zacks Investment Research

Shares of US rare earth companies rose in premarket trading Friday after a Reuters report said some Chinese suppliers have declined to ship rare earth materials to US customers despite receiving export licenses.

The developments come weeks before Chinese President Xi Jinping is scheduled to visit Washington, putting critical mineral supply chains back in focus.

USA Rare Earth USAR gained 4.8%, MP Materials shares rose 3.9%, and Critical Metals climbed 5.9% in premarket trading.

According to the Reuters report, some Chinese suppliers have refused shipments to US customers since early August, citing concerns about potential repercussions from Beijing and the possibility that materials could ultimately reach sanctioned users.

The issue adds to ongoing concerns about access to rare earths and other critical materials.

US officials have repeatedly urged China to follow through on commitments made in Busan and Beijing to support the flow of rare earth export licenses.

A source familiar with US planning said in the report that the issue has become part of preparations for Xi's planned Sept. 24 visit to Washington.

The supply situation remains tight for several rare earths and critical materials with applications in areas including aerospace, defense and chipmaking.

While exports of many rare earths and related magnets have recovered since China introduced restrictions in April 2025, prices for some materials remain near record highs.

China maintains dominant position in supply chainChina remains the dominant force in the global rare earth industry, accounting for about 70% of mining and 90% of processing.

Export restrictions and licensing delays have continued to affect US buyers.

Some US companies have reportedly waited more than six months for mineral licenses, while several firms have recently received multiple approvals after lengthy delays.

Yttrium exports to the US have increased this year but remain around half of 2024 levels.

China shipped 27 tons of yttrium to the US in July after two months without exports, marking the second-highest monthly shipment since January 2025.

Chinese restrictions have also affected other markets.

Chinese suppliers have largely refrained from shipping rare earth materials to Japanese companies, while exports of terbium, gallium and yttrium to Japan declined sharply in the first eight months of the year.

Reva Goujon, a geopolitical strategist at Rhodium Group, told Reuters that China has used rare earth export controls as a tool to constrain the US Commerce Department's Bureau of Industry and Security.

She also expects Beijing could loosen some controls around the summit to ease US concerns over the implementation of previous agreements.

China's foreign ministry said the country remained committed to maintaining global critical mineral supply chains.

The supply concerns are strengthening the focus on US and Western rare earth producers seeking to develop alternatives to China's dominant position.

USA Rare Earth is developing a domestic supply chain that includes its Round Top project in Texas.

The company also completed its acquisition of Serra Verde Group on Thursday. Serra Verde is described as "the only scaled producer of four magnetic and other critical heavy rare earth elements outside Asia": neodymium, praseodymium, dysprosium and terbium.

MP Materials operates the Mountain Pass rare earth mine in California and stopped selling rare earth concentrate to China in July 2025.

The company is also expanding domestic processing and magnet manufacturing, including at its Independence facility in Texas.

Critical Metals is developing the Tanbreez project in Greenland as a potential Western source of rare earths, although the project has not yet entered commercial production.

The US government has also increased support for domestic supply chains.

Last month, the Trump administration finalized a $1.55 billion funding package that includes equity investment, debt support and long-term purchase commitments aimed at expanding domestic rare earth production and reducing reliance on China.

With rare earth supplies expected to feature in the upcoming Xi-Trump meeting, developments in export licensing and shipments could remain an important factor for the sector.

USA Rare Earth's (USAR -0.95%) goal is to become a leader in critical minerals and a leading production partner for rare-earth elements, oxides, metals, and magnets. The company went public through a merger with a special purpose acquisition company (SPAC) in 2025, and it's been raising capital by selling its stock. Notably, the mining specialist has sold a significant equity stake to the U.S. government -- with the initial deal working out to a 10% ownership position and options to exercise warrants that could bring the government's ownership position as high as 16%.

Thanks to the company's fundraising moves, USA Rare Earth closed out the second quarter with a cash position of roughly $1.53 billion. Meanwhile, the company generated just $5.8 million in revenue in the quarter. With its current market capitalization at roughly $4.4 billion, even though the business is generating very little in sales, how should investors value the company?

Image source: Getty Images.

USA Rare Earth is a speculative bet with real catalysts Rare-earth elements and the broader category of critical minerals are essential for a wide range of defense and commercial technologies, and the U.S.'s ability to source these crucial building blocks represents a potentially foundational supply chain fault line with huge economic and national security implications.

China currently dominates the global market for the extraction and processing of rare-earth elements and critical minerals, and the U.S. and its allies are heavily reliant on its exports. Meanwhile, relations between the U.S. and China have generally become more adversarial, and China has moved to restrict access to minerals as a key point of leverage against its geopolitical rivals.

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In response to sourcing dynamics surrounding critical minerals, the U.S. is taking steps and moving quickly to increase its ability to reduce its reliance on China for important metals and elements. So while USA Rare Earth is currently generating little revenue relative to its valuation, there are good reasons to think that the business will scale rapidly.

USA Rare Earth is on track for a transformative acquisition In April, USA Rare Earth announced that it had entered into an agreement to acquire Brazilian rare-earth specialist Serra Verde for roughly $2.8 billion. The deal will see USA Rare Earth pay $300 million in cash and issue roughly 126.5 million new shares of common stock to Serra Verde -- a deal that will be hugely dilutive for shareholders but one that also looks poised to have a beneficial, transformative impact.

To facilitate the deal, the U.S. Department of Defense created a $1.55 billion special-purpose vehicle that includes $750 million in direct investment, $300 million in rare-earth element purchases, and $500 million in credit. With the acquisition's completion, USA Rare Earth projects that Serra Verde alone is on track to reach an annualized run rate for earnings before interest, taxes, depreciation, and amortization (EBITDA) between $550 million and $650 million by the end of 2027. Meanwhile, it expects that the combined company will generate roughly $1.8 billion in EBITDA in 2030. If USA Rare Earth hits that target, shares could be significantly undervalued at current prices.

For the past several years, USA Rare Earth (USAR -4.77%) has focused on financing projects, building manufacturing capacity, and assembling a domestic rare-earth supply chain. Those investments are finally beginning to produce commercial products, which means the market can now evaluate the company based on production, customer demand, and revenue growth rather than construction milestones.

USA Rare Earth recently commissioned the first phase of its commercial magnet production line at its facility in Stillwater, Oklahoma, enabling the company to begin fulfilling customer orders for its permanent magnets. Management says the facility represents the first new large-scale U.S. rare-earth magnet manufacturing plant in decades. Those magnets, by the way, are used in electric vehicles, robotics, aerospace, defense systems, and AI-related infrastructure. These are all industries that will be in high demand for the foreseeable future.

Here's what this could all mean for USA Rare Earth and the stock going forward.

Moving beyond the mine When it comes to rare-earth companies, mining alone captures only a portion of the industry's economics. In fact, the higher-value opportunity actually lies in processing rare-earth oxides and manufacturing permanent magnets. China still dominates much of that supply chain, making domestic production a strategic priority for both governments and manufacturers. USA Rare Earth is trying to build that entire value chain.

Image source: Getty Images.

In addition to its Oklahoma magnet facility, the company continues advancing development of its Round Top rare-earth project in Texas while expanding processing capabilities through strategic investments, including its recently completed investment in French rare-earth processor Carester. That partnership gives USA Rare Earth additional access to separation capacity while strengthening its position in the global supply chain.

The company also remains well-capitalized, with a balance sheet providing a decent amount of flexibility. USA Rare Earth ended the second quarter with approximately $1.53 billion in cash and cash equivalents. During the quarter, the company also finalized agreements with the U.S. Department of Commerce for access to up to $1.6 billion in CHIPS Act funding.

Management says that this capital will support the continued ramp-up of its Stillwater magnet facility, construction of a new magnet and metals manufacturing operation in South Carolina, and ongoing development of the Round Top rare-earth project.

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Of course, that doesn't mean the hard part is over. Commercial manufacturing is very different from building a facility. We now need to see consistent production volumes, customer wins, and growing revenue, rather than simply new construction announcements.

What will drive the stock Demand does appear to be working in the company's favor. Electric vehicles, humanoid robots, wind turbines, military equipment, and AI data centers all rely on high-performance permanent magnets. At the same time, the U.S. and Europe continue investing billions of dollars to reduce dependence on China's rare-earth supply chain. That creates a favorable backdrop for companies capable of producing magnets outside China.

Until recently, buying USA Rare Earth largely meant betting that management could finance and build a domestic rare-earth business. Now the focus shifts to whether the company can successfully manufacture, deliver, and scale commercial production. That's a much more measurable business.

The stock will almost certainly remain volatile as production ramps. But each commercial shipment, customer agreement, and increase in manufacturing output provides another data point you can use to evaluate execution. After years spent building the business, USA Rare Earth is finally entering the phase where results, not construction updates, are likely to drive the stock.

3 Rare-Earth ETFs That Help Investors Balance Exposure and RiskUSA Rare Earth NASDAQ: USAR reported second-quarter revenue of approximately $6 million, generated by third-party sales from its Less Common Metals metal and alloy-making business, while outlining progress on its mine-to-magnet supply chain strategy outside China.

The company reported a net loss attributable to common stockholders of $10.3 million, or $0.05 per share. The result included a non-cash fair-value adjustment of about $22.4 million related to warrant and earnout liabilities. Excluding that adjustment, adjusted net loss was $33.5 million, or $0.15 per share.

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USA Rare Earth Just Moved Closer to Commercial RealityChief Financial Officer Rob Steele said gross margins were affected by higher raw-material input costs amid supply constraints, particularly for heavy rare earths. The company is pursuing alternative supply sources ahead of expected feedstock access from Serra Verde and Carester. Steele said USA Rare Earth has already raised prices on its products and expects the impact to become visible in upcoming quarters.

Serra Verde vote and integrated supply-chain plans Chief Executive Officer Barbara Humpton said the company is seeking to establish an integrated rare-earth platform spanning mining, processing, metal and alloy production, and magnet manufacturing. She cited Chinese export restrictions and rising Western prices for certain heavy rare earths as evidence of the need for supply chains outside China.

Critical Metals: Sizing Up This Tiny Rare-Earth Stock Making Big MovesDuring the quarter, USA Rare Earth announced its intended acquisition of Serra Verde, invested in rare-earth processor Carester, and selected Blacksburg, South Carolina, for a second U.S. metals and magnet facility. The company also signed definitive documentation with the Department of Commerce for a milestone-based capital-expenditure reimbursement program.

The Serra Verde transaction’s shareholder vote is scheduled for Aug. 28, which Steele said was the final remaining closing condition. He said there are no remaining regulatory hurdles and that the acquisition is expected to close shortly following the vote.

Serra Verde is targeting run-rate capacity of 6,400 metric tons of total rare earth oxides by the end of 2027, Steele said. Humpton said the operation’s optimization and growth project was being recommissioned and was developing toward a commercial-production restart and ramp-up on time and within budget.

USA Rare Earth ended the quarter with approximately $1.5 billion in cash and cash equivalents and recorded $66 million in capital expenditures. Steele said the company expects to seek its first Commerce Department reimbursement distribution in the coming months.

Round Top and processing developments At the company’s Round Top project, USA Rare Earth began a resource-upgrade drilling campaign involving more than 10,000 feet of core across three rigs. Early assay results were in line with expectations for resource grade and confirmed heavy rare-earth distribution above 70%, according to Steele.

The company remains on schedule to complete its definitive feasibility study by year-end and publish an S-K 1300 technical report in early 2027. Round Top is targeted to begin commercial operations in late 2028.

At its Wheat Ridge, Colorado, research and development headquarters, USA Rare Earth commissioned a hydrometallurgical facility during June. The site is operating three demonstration circuits: the Round Top flowsheet, third-party mixed rare-earth carbonate separation, and magnet-swarf recycling. The data will support the Round Top feasibility study as well as engineering for a consolidated separation plant.

Humpton said the company produced its first commercial-grade dysprosium and NdPr oxide samples from recycled magnet-manufacturing swarf in July. During the analyst question-and-answer session, Steele said swarf could represent 20% to 30% of finished magnet production and potentially account for a similar share of future raw-material supply if recycled into oxides, metals and magnets.

Magnet production and customer pipeline USA Rare Earth said its Stillwater magnet operation had grown to 140 employees and is targeting 200 employees by year-end. The company expects to have 600 metric tons of annual run-rate magnet capacity at Stillwater by year-end, followed by an additional 600 metric tons in the first quarter of the following year.

Steele said Stillwater is expected ultimately to reach 3,600 metric tons of magnet-making capacity and 5,000 metric tons of metal-making capacity. The later-stage Blacksburg facility is expected to begin operating in early 2028, with its building shell due for completion at the end of 2027. Blacksburg is planned to have 5,000 metric tons of metal-making capacity and 6,400 metric tons of magnet-making capacity.

Across its magnet business, the company is in active commercial discussions with more than 100 potential customers, including more than 20 in qualification discussions. It has secured memorandums of understanding and letters of intent representing 2,500 metric tons of annual demand from large multinational customers in aerospace and defense, industrial automation, industrial motors and automotive markets.

Steele said the company has also received production purchase orders, prototype orders for finished parts and orders for semi-finished magnet blocks. Qualification timelines vary by customer, application and product requirements, but the company expects its first magnet sales by year-end. The company did not quantify the purchase orders that have resulted from prior memorandums of understanding.

Leadership transition Humpton said the call would be her final quarterly earnings call as chief executive. Thras Moraitis is scheduled to take over as CEO on Oct. 1. Humpton said she intends to remain focused on the business through the transition.

About USA Rare Earth (NASDAQ:USAR)USA Rare Earth NASDAQ: USAR is a development-stage critical minerals company focused on advancing a fully integrated rare earth element (REE) and lithium project in the United States. Its flagship asset is the Round Top deposit in West Texas, a large, polymetallic concentration of light and heavy rare earth elements, lithium and other co-products. The company seeks to move this asset through resource delineation, pilot-scale processing and eventual commercial production to address growing domestic demand for secure REE supply chains.

In addition to exploration, USA Rare Earth is engineering an on-site separation facility that will utilize dry magnetic separation and hydrometallurgical flowsheets to produce mixed rare earth carbonates.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Rare-earth elements are crucial for modern technologies, including electric vehicles, data centers, and advanced defense systems. Yet the supply chain is heavily concentrated in China, which controls 70% of global rare-earth extraction and 90% of rare-earth processing, according to research by The Motley Fool.

This reliance on a single country makes the U.S. vulnerable to supply chain disruptions, and policymakers are taking steps to boost domestic production of these critical minerals. Over the past year, several publicly traded companies have emerged to address this gap, including MP Materials (MP -1.94%), USA Rare Earth (USAR -0.23%), and TMC The Metals Company (TMC +0.55%).

These companies are leading the charge as the U.S. builds a vertically integrated "mine-to-magnet" supply chain, but each has a very different risk profile. If you're considering investing in rare-earth stocks, two of these are a buy, while one faces far more uncertainty. Here's what you need to know.

Image source: Getty Images.

The rare-earth supply push Rare-earth elements are crucial for emerging technologies, and magnet metals such as neodymium, praseodymium (NdPr), dysprosium, and terbium are key minerals used to manufacture high-powered permanent magnets. These magnets are used in electric vehicle motors, semiconductors, data center cooling systems, and military applications like fighter jets and missile guidance systems.

China has a stronghold on rare-earth elements and has used its position to tighten export controls as leverage in trade negotiations with the U.S. For this reason, the U.S. is taking drastic steps to boost its rare-earth industry, including launching a Strategic Critical Minerals Reserve, providing funding to help companies build out their mining and processing capabilities, and entering into historic partnerships that include investments in these rare-earth stocks.

These two rare-earth stocks are better buys right now When it comes to rare-earth stocks, MP Materials and USA Rare Earth look like more appealing investment options, while The Metals Company faces more regulatory risk with its deep-sea mining pursuits.

MP Materials has the most developed mining business, operating the only commercial-scale, active rare-earth mine in North America at Mountain Pass, California. The company has a first-mover advantage and was a clear choice when the U.S. government began investing in building out its domestic mine-to-magnet supply chain.

Last year, MP entered into a public-private partnership with the U.S. Department of Defense that included several unprecedented guarantees. The government established a 10-year price protection agreement (PPA) that guarantees a minimum price of $110 per kilogram for MP's neodymium-praseodymium (NdPr) product. This comes as the U.S. aims to protect MP from China's aggressive state-subsidized programs.

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As part of this, the DOD purchased $400 million in convertible preferred stock and warrants, which could represent up to 15% ownership in the rare-earth stock. In addition, the government has committed to purchasing 100% of the magnet production from MP's planned 10X facility, locking in an annual minimum earnings before interest, taxes, depreciation, and amortization (EBITDA) of $140 million.

USA Rare Earth is another company emerging as an attractive rare-earth stock thanks to government funding and huge acquisitions of established assets that diversify it away from Chinese supply chains. The company secured $1.6 billion in federal financing under the CHIPS and Science Act to boost its mine-to-magnet business, which will help pay for its $1.2 billion permanent magnet facility in South Carolina.

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Last year, USA Rare Earth acquired Less Common Metals (LCM), providing it with immediate metal-making capabilities and securing feedstock for its Oklahoma production plant. It also acquired the Serra Verde Group for $2.8 billion, giving it control of Brazil's Pela Ema mine, the only scaled producer outside Asia with all four critical magnetic rare-earth elements. This deal is expected to close in the third quarter.

TMC faces unique legal and regulatory risks TMC relies on developing commercial-scale deep-sea mining capabilities. But while the sea floor is rich in polymetallic nodules, mining the deep ocean floor has not been tested on a large scale. Not only that, but the company also faces scrutiny from environmentalists who are concerned that it could release toxins or stored carbon through sediment plumes, causing permanent damage to ocean biodiversity.

The company benefits from a Trump administration executive order designed to expedite permitting for deep-sea mining, but faces legal risk along the way. That's because the International Seabed Authority (ISA) has not yet finalized exploitation regulations, and there is heavy debate over whether the U.S. even has the authority to issue mining permits in these waters.

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On July 20, 2026, the Seabed Disputes Chamber of the International Tribunal for the Law of the Sea (ITLOS) issued unanimous provisional orders ordering the International Seabed Authority (ISA) to respect due process regarding TMC's subsidiaries. While this removes some regulatory uncertainty, TMC is still a highly risky stock until the ISA finishes the formal Exploitation Code and approves TMC's commercial extraction applications.

The bottom line on rare-earth stocks Rare-earth elements have come into focus in recent years, and for good reason. As the U.S. builds up its mining and processing capabilities and boosts mine-to-magnet production, MP Materials and USA Rare Earth stand ready to benefit. While TMC could benefit from this push as well, the company faces significantly more regulatory risks than the others do.

Investors should keep in mind that investing in any of these stocks carries risk, and sudden policy pivots or operational delays could trigger significant volatility. With that said, aggressive investors bullish on the rare-earth theme are better off buying MP Materials and USA Rare Earth, while avoiding (or selling) TMC until its regulatory and legal pathways become clearer.

Barbara Humpton to retire and Thras Moraitis to become CEO, both effective October 1, 2026

Michael Blitzer elected Executive Chairman, effective immediately

STILLWATER, Okla., July 20, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) (“USAR”, “USA Rare Earth”, or the “Company”), announced today that Barbara Humpton will retire as Chief Executive Officer and Board Director on October 1, 2026. USAR’s Board of Directors has named Thras Moraitis, current CEO of the Serra Verde Group (“Serra Verde”) and a highly experienced operator in the rare earths industry, as Ms. Humpton’s successor. Mr. Moraitis will assume the CEO role on October 1, 2026, following the anticipated completion of USAR’s combination with Serra Verde by the end of August. During the interim period, Mr. Moraitis will continue to oversee the combined company’s operations as President.

Michael Blitzer, current Chairman of USAR's Board and significant shareholder in the Company, has been elected Executive Chairman, effective immediately. Since its public listing, he has played a central role in setting USAR’s strategic direction, anchoring its vision to build a global mine-to-magnet value chain and identifying organic and inorganic growth opportunities. He also helped lead USAR’s efforts to obtain U.S. government financing, including by personally agreeing to restrictions on the transfer of his USAR common stock until certain strategic funding release milestones under the government financing are satisfied.

Ms. Humpton has been instrumental in steering USAR’s mine-to-magnet strategy, overseeing company milestones that have fundamentally transformed the Western critical minerals landscape. Under her leadership, USAR secured landmark public-private partnerships and established a global footprint spanning critical processing, metals, and magnet capabilities. She has also helped establish a culture that attracts the best and brightest minds across the sector.

Mr. Moraitis has served as Chief Executive Officer of Serra Verde since January 2023 and has an unparalleled track record of operational execution, strategic development and transaction leadership in the rare earths sector. Over his tenure, Serra Verde transformed into the only large-scale producer of the four critical magnetic rare earths outside of Asia and a pioneer of the Brazilian rare earths sector. In April 2026, Serra Verde entered into a definitive agreement to combine with USAR, creating a platform to support the first fully integrated, Western mine-to-magnet supply chain. Prior to Serra Verde, Mr. Moraitis served on the Executive Committee of Xstrata, led by CEO Sir Mick Davis, where he and the team grew Xstrata into a US$65B company, ultimately selling it to Glencore in 2013.

”On behalf of the Board of Directors, I want to thank Barbara for her leadership and contributions to USA Rare Earth – including securing landmark public-private agreements, advancing our global mine-to-magnet strategy and building an exceptional portfolio of industry leading assets,” said Michael Blitzer, Executive Chairman of USA Rare Earth’s Board of Directors. “With the Serra Verde combination nearing completion and our overall focus shifting to execution, Barbara and the Board agree this is the right time for a leadership transition. Thras is among a rare group of leaders in this industry, with a proven record of carrying companies through integration and large-scale project execution, honed over his many years helping build Xstrata. He knows what it takes to build an industry champion, and his relentless focus on operational excellence will be invaluable as we ramp to full production and scale. We are confident Thras is the right leader to guide USAR through this pivotal next chapter and deliver lasting value for all our stakeholders."

“When I joined USAR, I said this work was about being part of a mission that matters: strengthening national security, advancing American industrial competitiveness and building the critical supply chains required for the future,” said Ms. Humpton. “With the close of the Serra Verde transaction approaching and focus shifting to execution, the Board and I agree this is the right time to pass the torch to Thras. I could not be more grateful to the USAR team for what we have built, and the Board and our partners for their collaboration and commitment to those efforts. I look forward to supporting Thras and the team, and watching them execute on the transformative work that lies ahead.”

Mr. Moraitis concluded, “I am honored and excited to take on this role and grateful to Barbara for the strong foundation she has built. Over the past year, under Barbara’s leadership, the company has been transformed into a leading rare earth platform with enormous potential for growth. Through the merger integration preparation, I have become deeply familiar with USAR's operations across all steps in the value chain, its mission-critical ambitions and the importance of what it is building. Mike, the Board and I are all closely aligned in our vision for USAR: to create a platform comprising all components of the rare earth value chain, with the scale and capabilities to lead this industry globally. The rare earth industry and our customers are facing the unprecedented challenge of building secure, integrated supply chains to power the vital technologies propelling our society forward. Together, with our team and partners around the world, we will rise to this challenge.”

Additional Details About Thras Moraitis

Prior to joining Serra Verde in 2023, Mr. Moraitis served as Chief Development Officer and a member of the Executive Board of EuroChem Group AG. Mr. Moraitis was also a co-founder of X2 Resources, a US$5.6B mining investment fund. He previously served as Group Head of Strategy and Corporate Affairs and as a member of the Executive Committee of Xstrata Plc, where he was responsible for strategic development, post-acquisition integration, leadership development, external affairs and investor relations as well as Xstrata’s technology business. He has been involved in approximately 40 transactions over the course of his career and currently serves as an advisor to Vision Blue Resources. Mr. Moraitis holds an honors BSc in Electrical Engineering, a postgraduate qualification in Computer Science and an MBA.

About Michael Blitzer

Michael Blitzer is a Founder and Managing Partner of Inflection Point, the leading financial sponsor of companies at the intersection of national security, technology, and critical infrastructure. Across eight announced or closed public listings, he has led Inflection Point’s portfolio of strategically important assets, including more than US$5B of capital raised to catalyze growth across the portfolio. He has led billions of dollars in strategic M&A to scale portfolio companies into public leaders in their respective industries. As the financial sponsor and Chairman of USA Rare Earth since its 2025 public listing, Mr. Blitzer has overseen a nearly tenfold increase in market capitalization through M&A and the landmark US$1.6B public-private partnership with the United States Government.

About USA Rare Earth, Inc.

USA Rare Earth, Inc. (Nasdaq: USAR) is building a fully integrated rare earth and permanent magnet value chain across the United States, the United Kingdom, as well as plans for expansion in France and Brazil. Through its ownership of Less Common Metals (LCM), one of the world’s leading producers of rare earth metals and alloys, its magnet manufacturing capacity in Stillwater, Oklahoma, the planned acquisition of the Pela Ema mine in Brazil (subject to closing the Serra Verde Group transaction) and the Round Top deposit in Texas, USA Rare Earth operates across the entire value chain from mining to metal-making, alloy production and neodymium magnet manufacturing. USA Rare Earth is establishing a secure, Western supply of materials essential to the aerospace and defense, semiconductor, energy, data center, physical AI, mobility, healthcare and other key industrial sectors. For more information, visit www.usare.com.

Forward Looking Statements

Cautionary Note Regarding Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements regarding USAR’s expectations for future development, operations, strategies, transactions and financial performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as “anticipate,” “can,” “continue,” “could,” “growth,” “may,” “might,” “plan,” “potential,” “project,” “propose,” “should,” “target,” “vision,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

Forward-looking statements are subject to risks and uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from our expectations, including without limitation: risks that the proposed transactions with Serra Verde Group, Carester SAS and Texas Mineral Resources Corp. may not be consummated on their anticipated timelines or at all; we may not realize the anticipated benefits of our proposed and prior acquisitions, including expected synergies, financial performance, estimated earnings before interest, taxes, depreciation and amortization and, in the case of Serra Verde, integration of operations, on the anticipated timeline or at all; the ability of our magnet manufacturing facility in Stillwater, Oklahoma (the “Stillwater facility”) or other future magnet manufacturing facilities to commence commercial operations on the timing and with the production capacity anticipated or at all; our limited operating history; our ability to commercially extract minerals from the Round Top deposit in Texas on our anticipated timeline or at all; risks that we may experience delays, unforeseen expenses, increased capital costs, and other complications in operating our business; our ability to raise necessary capital on acceptable terms or at all; potential dilution to existing stockholders and adverse effect on our stock price if we issue additional common stock or equity-linked securities; the volatility of our stock price; our ability to satisfy project milestones and other conditions to disbursement under our financing arrangement with the DOC on the anticipated timeline or at all; our dependence on continued governmental support for the DOC financing transactions, which remains subject to changes in laws, regulations, administrations and appropriations; extensive affirmative and negative covenants, domestic content and national security guardrail provisions and ongoing reporting obligations in the DOC financing agreements that restrict our operational and financial flexibility; the risk that defaults under the DOC funding agreements could trigger cross-defaults across our financing arrangements; the impact of the DOC’s equity interest in us on our ability to pursue strategic transactions and on our relationships with customers, suppliers, partners and other counterparties; the availability of rare earth oxide, metal feedstock and other materials, utilities (including power and water) and equipment in quantities and prices that allow us to develop and commercially operate our Stillwater facility and other facilities; our ability to meet individual customer specifications and manufacture a consistently high quality product; fluctuations in demand for and prices of our products, including without limitation as a result of dumping, predatory pricing and other tactics by our competitors or state actors or the overall competitive environment; our ability to achieve positive cash flow or profitability or the ability to access cash flow within our corporate structure due to restrictions contained in our financing agreements; our ability to convert current commercial discussions and/or memorandums of understanding with customers for the sale of our neo magnets and other products into definitive orders; geopolitical developments or disruptions, such as changes in the political environment, export/import or environmental policy of the People’s Republic of China, the United States or other countries in which we operate or sell products or otherwise; limitations imposed on our business by the Chinese government; war, terrorism, natural disasters or public health emergencies; our ability to retain or recruit key personnel; environmental, health and safety regulations; and our ability to comply with requirements for federal, state and local government incentives and financing.
 Additional risks and detailed information regarding factors that may cause actual results to differ materially has been and will be included in our filings with the SEC. Any forward-looking statements speak only as of the date of this report (or such other date as is specified in such statements), and USAR undertakes no obligation to update any forward-looking statements as a result of new information or future events or developments, except to the extent required by law.

Additional Information and Where to Find It
In connection with our business combination with Serra Verde (the “Serra Verde Merger”), USAR filed the Preliminary Proxy Statement and, following SEC review, intends to file a definitive proxy statement (together with any amendments or supplements thereto, the “Proxy Statement”), to be distributed to USAR’s stockholders in connection with USAR’s solicitation of proxies for the vote by USAR’s stockholders with respect to the issuance of USAR common stock as merger consideration and other matters described in the Proxy Statement. SVRE’s shareholders approved the merger by written consent which was delivered concurrently with the signing of the merger agreement and will not receive a proxy statement or prospectus. USAR also plans to file with or furnish to the SEC other relevant documents regarding the Serra Verde Merger. After SEC review of the preliminary proxy statement is completed, the definitive Proxy Statement will be mailed to stockholders of USAR. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT AND ALL OTHER RELEVANT DOCUMENTS THAT ARE OR WILL BE FILED WITH OR FURNISHED TO THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER AND RELATED MATTERS.

Investors and security holders will be able to obtain free copies of the Proxy Statement and other documents containing important information about USAR and the Serra Verde Merger, once such documents are filed with or furnished to the SEC through the website maintained by the SEC at www.sec.gov. Copies of the documents filed with or furnished to the SEC by USAR will be available free of charge on USAR’s website at investors.usare.com or by contacting USAR’s Investor Relations department by email at [email protected]. The information included on, or accessible through, USAR’s website is not incorporated by reference into this communication.

Participants in the Solicitation

USAR and certain of its directors and executive officers and other members of its management and employees may be deemed to be participants in the solicitation of proxies in respect of the Serra Verde Merger.

Information about the directors and executive officers of USAR, including a description of their direct or indirect interests, by security holdings or otherwise, is contained in USAR’s Preliminary Proxy Statement. Any changes in the holdings of USAR’s securities by USAR’s directors or executive officers from the amounts described in the Preliminary Proxy Statement will be reflected in Statements of Changes in Beneficial Ownership on Form 4 (“Form 4”) or Annual Statements of Changes in Beneficial Ownership of Securities on Form 5 (“Form 5”) subsequently filed with the SEC and available at the SEC’s website at www.sec.gov. Additional information regarding the interests of such participants will be contained in the Proxy Statement when available.

No Offer or Solicitation

This communication is for informational purposes only and is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval on the Serra Verde Merger or otherwise, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or pursuant to an applicable exemption therefrom.

Investor Contact
JB Lowe
Vice President, Investor Relations
USA Rare Earth, Inc.
[email protected]

Media Contact
Collected Strategies
[email protected]

Underperforming the S&P 500, shares of USA Rare Earth (USAR 6.87%) inched 3.7% higher in 2025, while the index rose 16.4%. The first half of 2026, however, featured a very different story. According to data provided by S&P Global Market Intelligence, shares of USA Rare Earth soared 81.3% through the first six months of 2026.

With analysts consistently providing bullish outlooks on the stock and the rare-earth company reporting progress toward commencing commercial operations, investors found sufficient cause to click the buy button over the past several months.

Image source: Getty Images.

Digging into the sources of this mining stock's rise It didn't take long after the ball dropped before investors started bidding USA Rare Earth stock higher. Shares rose more than 88% in January after the company announced a partnership with the French government to develop a metal and alloy production facility in France that management expects to commence operations in late 2026.

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Reporting progress toward the start of domestic operations, USA Rare Earth announced in late January that it had selected Fluor to assist with its Definitive Feasibility Study for the company's cornerstone Round Top Rare Earth Project in Texas. Plus, the company announced that it had signed a non-binding Letter of Intent with the U.S. Department of Commerce and entered into a collaboration with the U.S. Department of Energy, totaling about $1.6 billion in federal funding. In addition, the company announced $1.5 billion in private funding provided by Inflection Point.

Analysts also espoused a more bullish outlook on USA Rare Earth stock in the early part of the new year. On Jan. 26, Roth Capital hiked its price target to $35 from $25, and the following day, Benchmark boosted its price target to 45 from $15.

Despite a strong start to the year, shares dipped in February and March. But the decline didn't persist. In April, USA Rare Earth stock headed higher after the company reported that its subsidiary had poured commercial-grade yttrium (a rare-earth metal) at its facility in the United Kingdom. The company lauded the achievement, characterizing it as a milestone that sets it apart as one of the few companies to do so outside China.

Another catalyst for the stock's rise in April was the company's announcement that it had entered into a definitive agreement to acquire Serra Verde Group, a large-scale producer of all four magnetic rare-earths, including the valuable heavy rare-earth dysprosium, terbium, and yttrium, for about $2.8 billion. According to USA Rare Earth management, the acquisition will de-risk the company as Serra Verde is expected to achieve annualized run rate earnings before interest, taxes, depreciation, and amortization of $550-$650 million by the end of 2027.

How are things looking in the second half of the year? Despite the strong performance in the first half of 2026, the second half of the year hasn't provided much for investors to celebrate, with shares sinking more than 20% as of this writing since June 30. For a speculative stock such as USA Rare Earth, the volatility is to be expected. Thus, those with lower risk tolerances who are interested in growth stocks that provide rare-earth exposure will be more interested in a rare-earth ETF.

Key Takeaways USAR remains unprofitable as expansion, acquisitions and workforce growth lift operating costs.Q1 2026 SG&A rose to $21.2M and R&D increased to $14.2M, contributing to a 34-cent per-share loss.USA Rare Earth commissioned Phase 1a magnet production, enabling Q2 2026 customer orders. USA Rare Earth, Inc. (USAR - Free Report) is still in the early phases of commercialization and continues to incur losses as it scales its operations. Though the company started generating revenues following the acquisition of Less Common Metals, higher operating expenses related to expansion, acquisitions and workforce growth are pressuring its profitability.

USAR’s cost of product revenues was $5.59 million in the first quarter of 2026. The figure was 98.1% of total revenues. In the same period, its selling, general and administrative expenses surged to $21.2 million from $7 million in the year-ago quarter owing to increasing legal & consulting costs, higher headcount & recruiting fees and other costs.

USAR’s research and development expenses climbed to $14.2 million compared with $1.7 million reported in the year-ago quarter due to higher employee-related and development costs. Consequently, the company posted a loss of 34 cents per share for the quarter.

However, USAR recently reached a significant milestone by commissioning Phase 1a of its commercial magnet production line at its Stillwater, OK, facility. This enables USAR to start fulfilling customer orders for sintered neodymium-iron-boron (NdFeB) permanent magnets in the second quarter of 2026.

While USA Rare Earth is making steady progress in expanding its operations, continued losses and cost pressures remain challenges. The company’s ability to balance growth investments with improving revenues and cost discipline is expected to benefit it in the quarters ahead.

USAR’s Peer PerformanceAmong its major peers, NioCorp Developments Ltd. (NB - Free Report) is experiencing rising cost pressures. In the third quarter of fiscal 2026, Niocorp reported a significant year-over-year increase in operating expenses, primarily driven by spending related to the advancement of the Elk Creek Project. If these elevated costs persist, they could weigh on NioCorp’s margins and profitability.

Its another peer, Rio Tinto Group (RIO - Free Report) , is gaining from rising copper production, driven by strong operational performance across its assets. However, weather-related disruptions in 2025 affected Rio Tinto’s iron ore volumes. Planned maintenance activities at some copper mining projects temporarily reduced Rio Tinto’s output in 2025, while cost pressures from inflation and higher sustaining capital spending impacted margins.

USAR’s Price Performance, Valuation & EstimatesShares of USAR have gained 85.8% in the past year compared with the industry’s growth of 58.1%.

Image Source: Zacks Investment Research

From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 70.07X against the industry’s average of 15.85X. USA Rare Earth has a Value Score of F.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for USAR’s 2026 earnings has decreased over the past 60 days.

Image Source: Zacks Investment Research

Key Takeaways USAR commissioned a Colorado facility targeting separated rare earth oxide output in Q3 2026.USAR's Stillwater magnet line targets 600 metric tons annually by end-2026, doubling by Q1 2027.TECK plans major copper growth through Anglo Teck and advancing Zafranal and San Nicolas projects. USA Rare Earth, Inc. (USAR - Free Report) and Teck Resources Limited (TECK - Free Report) are key participants in the Zacks Mining - Miscellaneous industry. Both companies are engaged in the extraction, processing and development of minerals that are essential to modern technologies and industrial applications. USAR and TECK are well-positioned to benefit from the growing demand for critical materials used in electrification, clean energy technologies and advanced manufacturing.

Both companies operate in capital-intensive mining industries that require extensive investments in infrastructure, advanced technologies and project development, while also navigating regulatory clearances and regulatory approval processes. At the same time, growing demand for minerals and metals critical to electric vehicles, renewable energy and other clean-energy technologies is creating favorable long-term growth opportunities for these companies.

The Case for USARUSA Rare Earth has commissioned its hydrometallurgical demonstration facility in Wheat Ridge, CO, in June 2026, marking a key step in building an integrated rare earth supply chain outside China. The company expects to begin producing commercial-quality separated rare earth oxides, including NdPr, dysprosium and terbium, in the third quarter of 2026.

The facility will process material from multiple sources, including the Round Top facility, third-party feedstocks and recycled magnet swarf, while supporting feasibility studies and future commercial-scale operations.

Also, the successful commissioning of Phase 1a of USAR’s commercial magnet production line at its Stillwater, OK, facility marks an important milestone in USAR’s growth strategy. The development enables the company to begin supplying sintered NdFeB permanent magnets to customers starting in the second quarter of 2026.

The commissioning demonstrates USA Rare Earth’s capability to operate a complex rare earth magnet manufacturing process at a commercial scale. At its Stillwater facility, USAR transforms rare earth materials into high-performance NdFeB permanent magnets through a series of production steps used in end markets such as defense, aerospace and automotive.

The Phase 1a is expected to achieve an annual production run rate of 600 metric tons by the end of 2026, while the planned Phase 1b expansion is projected to double total capacity to 1,200 metric tons annually by the first quarter of 2027. Once fully operational, the Stillwater facility is expected to be among the first large-scale NdFeB magnet manufacturing facilities in the United States, supporting a more resilient domestic rare earth supply chain.

USAR has strengthened its growth strategy through a combination of financing and acquisitions. In June 2026, the company secured access to up to $1.6 billion in government-backed funding under the CHIPS Program from the U.S. Department of Commerce. The package includes up to $277 million in federal funding and up to $1.3 billion in loan support as the company advances key development milestones.

In May 2026, USA Rare Earth secured a $14.2 million grant from the Texas Semiconductor Innovation Fund to boost the development of its Round Top Mountain rare earth project in West Texas, aimed at supporting domestic supply chains for critical minerals used in defense, semiconductors, AI and advanced technologies.

Also, in March 2026, USAR agreed to acquire Texas Mineral Resources Corp. in an all-stock transaction valued at approximately $73 million, giving it full ownership of the Round Top Project. The company expects commercial production at Round Top to begin in 2028, with a long-term goal of processing nearly 40,000 metric tons of rare earth and critical mineral feedstock per day by 2030. The November 2025 acquisition of Less Common Metals is expected to provide critical metal and alloy feedstock for the Stillwater plant.

While USAR is making progress with its growth initiatives, it is still in the early stages of commercialization and continues to report losses as it scales its operations. While the acquisition of Less Common Metals has started contributing to revenues, profitability remains under pressure from higher operating expenses associated with expansion efforts, acquisitions and workforce additions.

In the first quarter of 2026, selling, general and administrative expenses surged to $21.2 million from $7 million in the prior-year period, driven by higher legal, consulting and personnel-related costs. Research and development expenses also rose to $14.2 million from $1.7 million a year ago, reflecting increased investment in product development and growth initiatives.

The Case for TECKAs part of its long-term growth strategy, Teck Resources is increasing its focus on copper and other critical minerals that are essential for electrification and clean energy technologies. The company has agreed to merge with Anglo American plc to form the Anglo Teck group, creating one of the world's largest copper-focused mining companies. It will have more than 70% exposure to copper and is set to be among the top five global copper producers. The new company will consist of six world-class copper assets and premium iron ore and zinc operations with a combined annual copper production of 1.2 million tons. It is projected to grow 10% to 1.35 million tons by 2027, strengthening its position in the global copper market.

Teck Resources is further strengthening its copper growth pipeline by advancing several development projects toward sanction readiness. The company is progressing with permitting activities, securing land access and refining the business cases for its Zafranal and San Nicolás projects.

Zafranal is expected to have a mine life of 19 years and produce copper-gold concentrates through open-pit mining and conventional processing. The project is anticipated to generate an average of 126,000 tons of contained copper annually during its first five years of operation. Meanwhile, the San Nicolás project is advancing through the feasibility study stage and is expected to produce approximately 63,000 tons of copper and 147,000 tons of zinc annually during its first five years, on a 100% ownership basis.

Also, the Highland Valley Mine Life Extension is expected to extend the mine’s life from 2028 to 2046. Expected average annual copper production will likely be 132,000 tons over the life of the mine. The company expects to increase copper production to around 800,000 tons before the end of this decade.

However, the company’s zinc in concentrate production declined to 120 thousand tons in the first quarter of 2026 from 137 thousand tons a year earlier, reflecting lower grades at Red Dog in line with the mine plan. TECK expects zinc production to trend lower over the next three years as the mine approaches the end of its life. Full-year 2026 zinc production guidance is 410-460 thousand tons compared with 565 thousand tons produced in 2025.

Operating costs at several assets increased year over year due to higher contractor, energy and maintenance expenses. The company highlighted exposure to fuel price volatility and higher freight and explosives costs linked to geopolitical developments. Even though there is currently no significant risk of fuel supply disruption, the company expects an impact on costs at its Chilean operations due to the requirement for diesel imports.

How Does the Zacks Consensus Estimate Compare for USAR & TECK?The Zacks Consensus Estimate for USAR’s 2026 bottom line is pegged at a loss of 35 cents per share. Also, the company’s consensus estimate for the 2027 bottom line is pegged at a loss of 32 cents per share.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for TECK’s 2026 bottom line is pegged at $3.35 per share. Also, the company’s consensus estimate for 2027 bottom line is pegged at $2.89 per share.

Image Source: Zacks Investment Research

Price Performance and Valuation of USAR & TECKIn the past year, USAR’s shares have surged 103%, while TECK stock has gained 71.9%. 

Image Source: Zacks Investment Research

USA Rare Earth is trading at a forward 12-month price-to-earnings ratio of negative 73.33X while Teck Resources’ forward earnings multiple sits at 21.39X.

Image Source: Zacks Investment Research

Final TakeUSAR is benefiting from the ramp-up of its commercial magnet production line, along with strategic acquisitions and investments designed to build a fully integrated domestic rare earth supply chain. The acquisitions of Less Common Metals and Texas Mineral Resources are expected to enhance the company’s operational capabilities and support its long-term growth strategy. However, USAR remains in the early stages of commercialization and continues to incur losses as it invests in capacity expansion, technology development and other growth initiatives.

In contrast, Teck Resources’ strong performance in the coming quarters is supported by its scale of operation, asset diversity and strategic transformation. The planned merger with Anglo American will create a global copper and critical minerals leader, with more than 70% exposure to copper. Though near-term zinc in concentrate production at Red Dog has been impacted by operational issues, TECK’s long-life assets and growth projects are expected to lower execution risk.

Given these factors, TECK seems a better pick for investors than USAR currently. While TECK Materials carries a Zacks Rank #3 (Hold) at present, USA Rare Earth has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways USAR commissioned its Wheat Ridge demo facility to advance domestic rare earth processing.USAR began testing ore, third-party feedstock and recycled magnet swarf processing.USAR expects campaign data to support the Round Top feasibility study due by Q1 2027. USA Rare Earth, Inc. (USAR - Free Report) is advancing its growth strategy with the successful commissioning of its hydrometallurgical demonstration facility in Wheat Ridge, CO. This milestone marks a key step in the company's efforts to establish a fully integrated domestic rare earth supply chain and positions it to begin producing separated heavy rare earth oxides in the third quarter of 2026.

Over the past year, USAR expanded its integrated platform of proprietary technologies and capabilities spanning mining, processing and separation, metals, alloys and magnets. The company also prepared the Wheat Ridge facility for demonstration-scale operations to support future commercial processing activities.

The facility has started initial campaigns to test and optimize three processing methods simultaneously: processing ore from the Round Top project, processing third-party mixed rare earth carbonate (MREC) feedstock, including material from Serra Verde's Pela Ema mine, and recycling rare earth magnet swarf. The resulting oxides are expected to support downstream metal, alloy and magnet production through Less Common Metals, one of the few commercial-scale metal, alloy and strip cast producers outside China. Heavy rare earth oxides such as dysprosium, terbium and yttrium are critical materials used in defense, energy, electric vehicle and other advanced technology applications.

The demonstration campaigns are expected to generate operational data that will support the Round Top Definitive Feasibility Study, which remains on track for completion in the fourth quarter of 2026 and publication in the first quarter of 2027. As operations advance, the Wheat Ridge facility is expected to play an important role in strengthening the U.S. rare earth supply chain.

Snapshot of USA Rare Earth’s PeersAmong its major peers, NioCorp Developments Ltd. (NB - Free Report) is working to move its Elk Creek Project in Nebraska closer to production. In August 2025, NioCorp completed its first drilling program at the Elk Creek Project on schedule and within budget. In February 2026, NioCorp started construction of the main underground access for its Elk Creek Critical Minerals Project in southeast Nebraska.

USAR’s other peer, Trilogy Metals Inc. (TMQ - Free Report) , continues to make steady progress at the Ambler mining district. Although Trilogy is not yet in production, it is taking a step ahead with Ambler Metals LLC, which is a joint venture with South32 Limited. In July 2025, Trilogy began a multi-year core re-boxing program to protect drill core for long-term future use.

USAR’s Price Performance, Valuation & EstimatesShares of USAR have gained 90% in the past year compared with the industry’s growth of 50.3%.

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From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 71.85X against the industry’s average of 14.92X. USA Rare Earth carries a Value Score of F.

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The Zacks Consensus Estimate for USAR’s 2026 earnings has decreased over the past 30 days.

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